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Turkey to build regulatory sandbox for blockchain projects

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Yesterday the Turkish digital strategy for 2023 was released, outlining how the country will develop its technological capabilities. It revealed that Turkey plans for a ‘National Blockchain Infrastructure” among cloud computing, Internet of Things (IoT), and open source initiatives.

The government will build this infrastructure to encourage innovation and implement blockchain in the public sector. The initiative includes a testing environment for pilots and a regulatory sandbox to allow projects to grow.

Turkey’s official document points out the success of South Korea’s use of blockchain in naval defenselivestock traceability, and customs. Likely inspired by the nation, Turkey aims to develop public-centered applications in land registry and education with an open-source platform.

It will also support enterprise projects: “The use of blockchain technology in enterprise financing has become remarkable,” the report reads. The planned test environment will be available to a “set of participants” yet to be established. However, Turkey suggests multiple pilot applications such as supply chain, banking, and legal follow-ups.

The regulatory compliance of enterprise initiatives could further be tested in the government’s sandbox. Indeed, “[b]lockchain initiatives find application areas in regulated sectors,” so Turkey does not want to hinder their progress. This way, businesses can earn certification for blockchain projects in an open environment.

Turkey’s strategy came out on the same day as Germany’s extensive plans for blockchain regulation and use in government. While Turkey has a section on the technology among other digital initiatives, the German document is entirely dedicated to blockchain.

Last week, Turkish bank Takasbank announced a blockchain trading platform for gold. Turkcell, the country’s largest mobile provider, launched its blockchain-based identity management service earlier this year.